Land Transfer Taxes: Ontario Vs. Calgary
A land transfer tax, also known as a property transfer tax or stamp duty in some jurisdictions, is a tax imposed by the government when ownership of a property is transferred from one party to another. It is typically paid by the buyer on the purchase or transfer of real estate, including residential homes, investment properties, commercial properties, and vacant land.
In some cities like Toronto, there are multiple land transfer taxes imposed by different levels of government, significantly increasing purchase costs for buyers. Remember, you need to pay the land transfer taxes in CASH at closing, so in Toronto, you are looking at over $37,000 for the average property – that’s a lot of money!
As an investor, this is money straight out of your pocket that is directly added to the cost of the purchase. In cities like Calgary, the land transfer taxes are $0 because there are none! The $37,000 in taxes you would pay in Ontario is actually the downpayment on a 2 bed/2 bath unit with parking at Horizon condos in Calgary!
Be aware of all of the costs of investing and use your money more wisely. Contact me for more details on how to do this.